Correlation Between AMG Advanced and GreenX Metals
Can any of the company-specific risk be diversified away by investing in both AMG Advanced and GreenX Metals at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining AMG Advanced and GreenX Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMG Advanced Metallurgical and GreenX Metals, you can compare the effects of market volatilities on AMG Advanced and GreenX Metals and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in AMG Advanced with a short position of GreenX Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMG Advanced and GreenX Metals.
Diversification Opportunities for AMG Advanced and GreenX Metals
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between AMG and GreenX is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding AMG Advanced Metallurgical and GreenX Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenX Metals and AMG Advanced is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on AMG Advanced Metallurgical are associated (or correlated) with GreenX Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GreenX Metals has no effect on the direction of AMG Advanced i.e., AMG Advanced and GreenX Metals go up and down completely randomly.
Pair Corralation between AMG Advanced and GreenX Metals
Assuming the 90 days trading horizon AMG Advanced Metallurgical is expected to under-perform the GreenX Metals. But the stock apears to be less risky and, when comparing its historical volatility, AMG Advanced Metallurgical is 1.3 times less risky than GreenX Metals. The stock trades about -0.06 of its potential returns per unit of risk. The GreenX Metals is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 3,100 in GreenX Metals on August 30, 2024 and sell it today you would earn a total of 450.00 from holding GreenX Metals or generate 14.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMG Advanced Metallurgical vs. GreenX Metals
Performance |
| Timeline |
| AMG Advanced Metallu |
| GreenX Metals |
AMG Advanced and GreenX Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMG Advanced and GreenX Metals
The main advantage of trading using opposite AMG Advanced and GreenX Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMG Advanced position performs unexpectedly, GreenX Metals can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in GreenX Metals will offset losses from the drop in GreenX Metals' long position.| AMG Advanced vs. Griffin Mining | AMG Advanced vs. Greenroc Mining PLC | AMG Advanced vs. International Biotechnology Trust | AMG Advanced vs. AfriTin Mining |
| GreenX Metals vs. Givaudan SA | GreenX Metals vs. Antofagasta PLC | GreenX Metals vs. Centamin PLC | GreenX Metals vs. Atalaya Mining |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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